FOR THIRD READ AS VETOED
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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
VETOED
human services; FY2026
Purpose
Makes session law changes relating to human services necessary to implement the FY 2026 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
H.B. 2968 contains the budget reconciliation provisions for changes relating to human services.
Provisions
1. Continues to require the Department of Economic Security (DES) in FY 2026 to screen and test each adult recipient who:
a) is eligible for Temporary Assistance for Needy Families (TANF) cash benefits; and
b) DES has reasonable cause to believe engages in the illegal use of controlled substances.
2. Continues to render any TANF recipient who tests positive for the use of a controlled substance that was not prescribed for the recipient by a licensed health care provider as ineligible to receive TANF benefits for a period of one year.
3. Becomes effective on the general effective date.
Governor's Veto Message
The Governor indicates in her veto message that H.B. 2968, and this version of the FY 2026 budget as a whole, does not provide adequate funding for first responder pay raises, childcare, infrastructure, K-12 schools and higher education and removes efforts to combat veteran homelessness. The Governor encourages working in a productive fashion to deliver a bipartisan solution for Arizonans.
House Action Senate Action
APPROP 6/24/25 DP 11-6-0-2 3rd Read 6/25/25 16-11-3
3rd Read 6/24/25 31-25-4
Vetoed by the Governor on 6/25/25
Prepared by Senate Research
June 26, 2025
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